“`markdown Arkansas Lawmakers Move to Restrict Crypto Mining Near Military Bases “`

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With more people in the U.S. adopting cryptocurrency, mining companies are rapidly expanding their activities to cash in on the digital asset surge. These operations, particularly those focused on Bitcoin, heavily depend on advanced computing systems to solve intricate mathematical problems, confirm transactions, and ensure the network’s security.

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Yet, this procedure requires a substantial amount of electricity, sparking worries from regulators and legislators regarding its influence on regional power networks and national security issues.

In response, Arkansas lawmakers have proposed a fresh legislation intended to limit cryptocurrency mining activities around military bases, expressing concerns about possible threats related to power usage and safety.

Arkansas Bill Seeks to Amend Data Centers Act

Senate Bill 60, which was put forward by Senator Ricky Hill and House Speaker Brian Evans, aims to modify the Arkansas Data Centers Act of 2023. This bill intends to restrict crypto mining operations from being established near military bases within a distance of 30 miles. Furthermore, it includes military camps, hospitals, clinics, and arsenals situated within the state as well.

Even with the new regulations in place, there’s an allowance for mines that were already constructed and running prior to December 31, 2023, to keep operating. This concession seeks a harmonious blend of regulatory control and protection for established industries to prevent any unwanted interruptions.

The legislation primarily stemmed from recent events in Cabot, Arkansas, as Interstate Holdings, a Florida-based real estate investment company, initiated the building of a cryptocurrency mining operation close to the Little Rock Air Force Base.

The location, situated within a short distance (under 5 miles) of the airbase, has stirred worries among nearby authorities and community members. They are apprehensive about possible dangers to our country’s safety and essential facilities.

Expressing these concerns, Senator Hill questioned the facility’s location, stating:

Could you explain why they chose a facility located within about 8 kilometers of our military airport? It raises questions about the safety of our national security.

Additionally, Mayor Ken Kincade echoed similar thoughts, stating that crypto-mining operations can generate significant noise pollution.

He stated that these facilities produce bothersome noise levels and pollution which harmfully impact humans, pets, wildlife, the environment, and general health.

Not the First

Previously, Arkansas legislators have proposed laws to regulate cryptocurrency mining within the state. Specifically, in May 2024, they introduced two bills in the Arkansas House of Representatives that seek to limit specific crypto mining practices in the area.

Among the suggested actions, Bill 78 introduces rules to limit noise in cryptocurrency mining centers, controls water consumption for cooling purposes, prohibits foreign entities from operating these facilities, and returns the power to regulate them back to local governments.

In addition, Senate Bill 79 lays out a state-level licensing and oversight system. This system will be managed by the Oil and Gas Commission within the Department of Energy and Environment.

Currently, as reported by the Associated Press, the bills are moving towards Governor Sarah Huckabee Sanders’ desk for signing, with her office indicating their intention to enact these bills into law.

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2025-01-16 17:33